AmCham: Vietnamese Government is doing a very effective job responding to Coronavirus

The American Chamber of Commerce in Hanoi (AmCham) on March 31 announced the results of a survey of the U.S. business community in Vietnam on the impact of the coronavirus. Over three-quarters of respondents feel the Vietnamese Government is doing a very effective or extremely effective job responding to the coronavirus crisis.

“Our members express their support and appreciation for the government's efforts to keep people safe and healthy during this crisis. Almost all survey respondents said that the government is doing an effective job responding to the crisis,” said AmCham Executive Director Adam Sitkoff.

The survey focused on quantitative issues such as the coronavirus’ expected impact on corporate revenues and Vietnamese GDP, as well as workplace issues such as travel and work from home policies. The survey took place in late March, before the latest restrictions on business activity and movement.

80% of responding members are very concerned about the economic impact of the virus. “The ongoing coronavirus outbreak is causing anxiety and uncertainty for both people and businesses in Vietnam. AmCham members are primarily concerned with ensuring the safety of employees, supply chain disruptions, and coping with the sharp drop in consumer and customer demand,” said Adam Sitkoff.

Manufacturing companies are operating at 76% of their normal capacity right now, and 78% of these companies have sufficient staff to run a full production line. 40% of surveyed members are experiencing difficulties in sourcing supplies and materials due to disruptions from the coronavirus, but they expect the situation to improve in the next few weeks.

The Executive Director noted the importance of all doing our part to help in these challenging times. “Be patient, use common sense, practice social distancing, maintain good hygiene - and stay at home. Only go out for essentials. Most importantly, be mindful of your actions and take care not to put yourself and others at risk through inappropriate behavior,” Sitkoff said.

Survey Highlights

• 80% of responding members are very concerned about the economic impact of the virus.
• Over three-quarters of respondents feel the government is doing a very effective or extremely effective job responding to the coronavirus crisis.
• Reduced revenue and demand is the top challenge facing AmCham members.
• One-half of respondents are delaying the hiring of new employees.
• One-half of members say the virus outbreak has impacted their business to a great extent.
• Three-quarters of members say that travel restrictions are preventing them from doing their jobs effectively.
• Manufacturing companies continue to face challenges from reduced order demand, logistics, and cash flow management.

By Nam Pham, Vietnam Business Forum